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Income Tax Act s. 62, 248(1)

Line 219 Moving Expenses Deduction

If you moved at least 40km to be closer to a new job, to run a business, or
to attend a post-secondary educational institute full time, then you may
deduct moving expenses, up to the amount you earn at the new location, or up
to the amount of award or scholarship income received in the year.

Normally, for the relocation to be an "eligible
relocation", both the old and the new residence must be located in
Canada, except in the case of a full-time
student. However, a move between two locations outside of Canada can
also be an "eligible relocation" if:

you are a Canadian resident (either factual or deemed)
living out of the country, and

you moved from the place where you ordinarily resided,
to live in another place where you ordinarily reside.

You
may carry excess expenses forward to be offset from income earned at the new
location in the next year. When both spouses have moved and subsequently
earn income in the new location, the moving costs can be split between the
spouses.

Many costs are deductible as moving expenses, including:

transportation and storage costs for household effects

travel, including vehicle costs and reasonable costs for
meals and accommodations in the course of moving the taxpayer and members of
the taxpayers household from the old residence to the new residence

costs of canceling a lease for the old residence

real estate commission, advertising, legal and other costs
re selling the old residence

legal fees re the purchase of a new home, and any tax, fee
or duty (other than GST or value-added tax) imposed on the transfer or
registration of title to the new residence

costs re maintaining the old residence, up to a maximum of
$5,000, while the old residence is either vacant, or not occupied by any
person who ordinarily resided with the taxpayer at the old residence
immediately before the move, and while the old residence is not rented by the
taxpayer to any other person. These costs are deductible as long as
reasonable efforts are made to sell the old residence

change of address costs, such as replacement of drivers'
licenses, non-commercial vehicle permits, and costs of connecting or
disconnecting utilities

Note that if any moving costs have been reimbursed by your employer, then
the moving costs must be reduced by the amount received, unless the reimbursed
amount is included as income elsewhere on your tax return.

Employer-Paid
Moving Expenses and Taxable Benefits

If an employer reimburses an employee for moving expenses re
a transfer to a new work location, certain of these expense reimbursements will
not be considered a taxable benefit to the employee, while some reimbursements
will be considered a taxable benefit. When the employee has an eligible
housing loss, only half of the amount exceeding $15,000 is taxable.

If the benefit to the employee is taxable, then CPP
contributions and income tax must be deducted. If the taxable benefit is
paid in cash, employment insurance (EI) premiums must be deducted.
Non-cash benefits are not subject to EI.